Week 56 Child Benefit 23/24

Stockport05

I get paid 4 weekly so have some issues with week 56 in 23/24 where an additional pay packet falls into the tax year because of the leap year. 

Because of the additional payment in the year I have gone over the threshold for High Income Child Benefit Charge so have a hefty tax bill. 

I have completed my Self Assessment and was hoping to check whether anyone knows if there is dispensation for the HICBC if you are paid four weekly and have that extra payment?

Thank you 

TheSpectator

Stockport05 said:

I get paid 4 weekly so have some issues with week 56 in 23/24 where an additional pay packet falls into the tax year because of the leap year. 

Because of the additional payment in the year I have gone over the threshold for High Income Child Benefit Charge so have a hefty tax bill. 

I have completed my Self Assessment and was hoping to check whether anyone knows if there is dispensation for the HICBC if you are paid four weekly and have that extra payment?

Thank you 

No dispensation. Why would there be?

Most of the tax due will relate to the week 56 payment rather than HICBC.

chrisbur

I have not seen any mention of a dispensation and as said above quite a bit of the tax owed is due to the week 56.  Without seeing actual figures cannot say what the tax owed would be but as an example say someone on £4300 per 4 weeks with standard allowance would owe nearly £1000  They would have had a tax free allowance and a 20% allowance given for week 56 which has now been recalculated with 40% tax due on all of the earnings for week 56.

Just to add that the leap year does not cause a week 56 to happen though the chances of it happening in a leap year are a bit higher than any other year they can happen in a non leap year.  On average the week 56 will occur once every twenty two and a bit years.

Stockport05

Thanks for the replies everyone.

I can understand the tax underpayment and paying back through an updated tax code is nice and simple. 

It’s the HICBC which is a shock to the system for an absolute beginner in this area. 

silvercar

You can reduce your relevant income by increasing pension contributions and/or charity donations.